Agenda item

To consider a report by the Chief Finance Officer which seeks approval of the

Council’s final audited Statement of Accounts and to consider any material amendments identified by the Council or recommended by the auditors.

(Report attached)

The Chief Officer - Financial Services submitted a report which sought approval of the Council’s final audited Statement of Accounts and to also consider any material amendments identified by the Council or recommended by the auditors.

In presenting their report KPMG responded to Members concerns about the late circulation of their ISA260 report and the limited time Members had had to read the conclusions from their audit work. 

KPMG and Officers offered their apologies for the late circulation of their audit report (on the 27^th July) and by way of explanation indicated that this was due to a small number of audit issues which remained to be resolved when the agenda was distributed to Members. 

Members were advised that some changes had been made to the draft Accounts and that these had been included in the revised Accounts document previously circulated to Members;

·  An increase of £1m in the business rates appeals provision for the Collection Fund as a whole to reflect an updated position received from the Valuation office  in respect of likely Business Rate Appeals, of which £500k will ultimately fall on the Council;

·  Adjustments to non-spendable capital reserves following the valuation of a number of individual assets by way of an increase of Property, Plant and Equipment on the balance sheet by £8.3m

·  An increase of £52.8m in the value of assets held at depreciated replacement cost to reflect increases in building costs between the council’s revaluation date of 1^st April 2017 and 31^st March 2018.

Officers also updated the Committee on a further adjustment, to increase the value of council dwelling assets.  Members were informed that the previously reported provisional figure of £21.6m needed now to be reflected as £52.7m in the Accounts, following additional work undertaken since the draft ISA260 report had been made available to Members.

By way of context the representative from KPMG confirmed that the adjustments to asset values stemmed from national guidance to auditors in late June and early July concerning valuations of property, plant and equipment.  Members were advised that recommendations had been made and accepted by management concerning the timing of valuation work for future years.

Members also received assurances from KPMG in relation to the valuation of Pension Assets and Liabilities and on the methodology employed, and scope for, the Value for Money judgement provided in their ISA260 report.

In considering the resolution of the Committee at paragraph 6.2, given the late provision of the ISA260 report and the adjustments reported verbally to the Committee, the Chair sought further reassurance from KPMG as to the veracity of the Accounts and whether the proposed changes were correct – Mr Cutler remarked that all asset valuations are by their nature estimates, and confirmed that the changes proposed reflected the latest available information and were required to update the previously assumed estimates.

(Prior to the conclusion of this item Members resolved under paragraphs 10.4.3 and 10.4.5 to exclude the press and public to receive information in respect to the joint protective claim made against Barclays Bank concerning loans provided by the Bank at a time when Barclays have admitted previously manipulating LIBOR).

RESOLVED -

(i)  To receive the report of the Council’s external auditors on the 2017/18 accounts and to note its findings.

(ii)  To approve the final audited 2017/18 Statement of Accounts and to request the Chair to acknowledge the approval on behalf of the Committee by signing the appropriate section within the Statement of Responsibilities on page 1 of the accounts.

(iii)  On the basis of the assurances received, the Chair be authorised to sign the management representation letter on behalf of the Corporate Governance and Audit Committee.

(iv)  To note KPMG’s VFM conclusion included within their final audit report.

(v)  To note that there is an outstanding objection to the 2016/17 accounts which is still under consideration by KPMG, and which may result in a delay in the completion of the overall 2017/18 audit.

(vi)  That in respect of (v) above, a verbal update be provided at the next meeting

(vii)  To note the update provided by the Chief Officer - Financial Services in respect of the Council’s joint protective claim and the Committee asked to be kept up to date as to progress as appropriate.